In what may spell fresh trouble for state-run Coal India, the Competition Commission of India (CCI) has ordered a fresh probe against the company on allegations of abuse of its dominant position in the market for production and supply of coal.
In an order released on Tuesday, the competition watchdog said, “Taking into account the averments and the allegations made by the informant, the Commission is of prima facie view that the opposite parties appear to have contravened the provisions of section 4(2)(a) (i) of the Act by imposing unfair terms and conditions upon the informant.”
Earlier, GHCL Ltd, engaged in the business of manufacture and sale of soda ash, approached the CCI alleging that the company and its subsidiary Western Coalfields, had imposed unfair conditions in fuel supply agreements with the power producers for supply of non-coking coal.
A similar complaint was also filed by Maharashtra State Power Generation Company (Maha Genco) and Gujarat State Electricity Corp against Coal India.
“As the allegations in the present case also have been made by the informant in the context of requirement of coal for its captive power plant, the relevant market in this case would also be on the similar lines,” the CCI said.